Chevron's executive Eimear Bonner presented the company's growth strategy for Venezuela at the Barclays 40th Annual Energy-Power Conference on September 8, 2026. The plan aims to double current production from 280,000 barrels per day to 600,000 barrels per day by 2031, with an anticipated plateau between 600,000 and 700,000 barrels per day for five to ten years at the primary recovery stage. The $7 billion investment over five years, extending into the early 2030s, will see rig counts more than double. Development costs are described as low-cost, factory-style at less than $20 a barrel, with minimal new capital projects required for expansion.
The growth plan is facilitated by the Organic Hydrocarbons Law, which offers improved royalty and tax terms. Chevron has acquired contiguous acreage, including two new blocks named Carabobo One and Two, and has contractual provisions protecting terms across administrations and offering the right to international arbitration. Bonner described the arrangement as a 'win-win-win' for Venezuela, investors, and U.S. energy security.
Chevron has delivered $3 billion in structural cost cuts six months ahead of schedule, achieving roughly 70% of the savings through efficiency gains. The company maintains a policy of annual dividend increases for 39 consecutive years, with dividend payments sustained for 56 years, yielding 3.41%. Share buybacks are currently paused due to oil-price volatility, with excess cash directed toward strengthening the balance sheet. Chevron's market capitalization stands at $411 billion, with a P/E ratio of 20.1 and a PEG ratio of 0.58. The stock has gained over 40% year-to-date, trading near its 52-week high of $214.71.
In the Permian Basin, Chevron has reached a plateau of 1 million barrels per day, shifting to free cash flow harvesting mode. Capital intensity is expected to fall by 25% in 2026 compared to 2025, with drilling efficiency doubling compared to two years prior. Bonner noted the company is achieving 'more with less'.
In Kazakhstan, Tengizchevroil's oil capacity increased by over 20% to 320,000 barrels per day following a debottlenecking campaign and the startup of a third-generation plant. Contract talks remain ongoing with ExxonMobil, Lukoil, and KazMunayGas.
Chevron's exploration portfolio has seen six discoveries over the past two years, with acreage increased by 35% in the prior year and an additional 10 million acres added in the current year. Active regions include Guyana, West Africa, the Eastern Mediterranean, and Iraq. In Iraq, Chevron is negotiating exclusively with the government on three opportunities: the West Qurna 2 operating asset, the Nassiriya field, and possible pipeline participation. A head-of-agreement addendum has been signed on all three items, with a commercial and competitive terms timeline expected over a one-year horizon.
Chevron operates 5 gigawatts of power generation globally, largely tied to oil and gas operations. The company announced its first gigawatt-scale plant in the Permian, backed by a 20-year power purchase agreement from the customer.
